Over the course of the last two months, Libya has taken significant
steps in implementing its commitment to disclose and dismantle all
weapons of mass destruction programs in Libya, as well as the missile
systems to deliver them, and to welcome experts from the U.S., UK, and
relevant international organizations to assist in this effort.

Libya has permitted the elimination of critical materials related
to its nuclear weapons program and ballistic missile capability,
including weapons-related documentation, uranium hexafluoride (UF6),
missile guidance systems, and centrifuges. It has opened its sites to
IAEA and OPCW personnel, provided excellent support to US and UK
experts, and begun the process of destroying chemical weapons
munitions. Libya's disclosures have also shed light on the
international network of proliferators, who are intent on subverting
nonproliferation regimes, regardless of the consequences. American
efforts with Libya since December 19 have made our country safer and
the world more peaceful.

While more remains to be done, Libya's actions have been serious,
credible, and consistent with Colonel Qadhafi's public declaration that
Libya seeks to play a role in "building a new world free from WMD and
from all forms of terrorism."

The President has made clear that Libya's decision to renounce
these programs voluntarily would open the path to better relations with
the United States.

In recognition of Libya's concrete steps to repudiate WMD and to
build the foundation for Libya's economic growth and reintegration with
the international community, the United States will take the following
steps to encourage Libya to continue on this path:

First, the Secretary of State has rescinded the restriction
on the use of American passports for travel to Libya.

Second, the Treasury Department will issue today a general
license for all travel-related expenditures in Libya. What this means
in practical terms is that American citizens, for the first time in 23
years, will be able to travel to Libya, including for tourism, academic
research, and family visits.

Third, U.S. companies with pre-sanctions holdings in Libya
will be authorized as of today to negotiate the terms of their re-entry
into operations in Libya, subject to the requirement of a further U.S.
approval for implementation of any agreements if sanctions have not
otherwise been lifted.

Fourth, the United States invites Libya to establish an
Interests Section in Washington, to facilitate our cooperation in the
elimination of WMD and to lay the foundation for more extensive
diplomatic relations in the future. We will continue to augment our
U.S.-staffed Interests Section in Tripoli, to reflect the increasing
depth of our bilateral relationship.

Fifth, the Administration commits to increasing contacts
between Libyan and American societies and exploring cooperation in
humanitarian projects. On February 28, a delegation of U.S. medical
specialists from the Department of Health and Human Services and the
U.S. Agency for International Development will arrive in Tripoli for
consultations on health care delivery and disease prevention. We have
invited Libya to send an official delegation to the United States for
discussions on future educational opportunities for Libyan students
here in the United States.

As Libya continues to take steps that will lead to the complete
dismantling of its WMD and MTCR-class missiles programs and adheres to
its renunciation of terrorism, the United States will continuously
evaluate the range of bilateral sanctions that remain in place relating
to Libya.

The United States will approach relations with Libya on a careful,
step-by-step basis. We have made clear that progress in our bilateral
relationship will depend upon continued, good faith implementation by
Libya of its own public commitments on WMD, missiles, and terrorism.

Assistant Secretary for Near Eastern Affairs William Burns will
continue his dialogue with Libyan officials to review the next phase in
American-Libyan relations.